Taiwan Semiconductor Manufacturing (NYSE:TSM) Stock Jumps 4.1% Following Dividend Announcement

Key Points

• TSMC shares rose 4.1% after the company announced a quarterly dividend of $1.3663 per share, up from $1.0854. The new dividend annualizes to $5.47 per share, a 1.3% yield.
• Analysts’ consensus rating is Buy, with an average price target of $533.89; 14 of the 16 analysts cited rate the stock Buy or Strong Buy.
• In its latest reported quarter, TSMC beat earnings and revenue estimates, with revenue up 41.2% year over year.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) was up 4.1% during mid-day trading on Wednesday after the company announced a dividend. The company traded as high as $416.80 and last traded at $412.7350. Approximately 14,181,320 shares traded hands during mid-day trading, an increase of 7% from the average session volume of 13,242,657 shares. The stock had previously closed at $396.48.The newly announced dividend which will be paid on Thursday, April 8th. Stockholders of record on Thursday, March 11th will be given a $1.3663 dividend. This represents a $5.47 annualized dividend and a dividend yield of 1.3%. This is an increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.0854. The ex-dividend date of this dividend is Thursday, March 11th. Taiwan Semiconductor Manufacturing's payout ratio is 22.07%.

Wall Street Analysts Forecast Growth

TSM has been the topic of a number of recent analyst reports. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a report on Wednesday, October 7th. Stifel Nicolaus began coverage on shares of Taiwan Semiconductor Manufacturing in a research note on Tuesday, September 1st. They issued a "buy" rating and a $515.00 price objective for the company. Susquehanna lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the stock a "positive" rating in a research report on Thursday, July 16th. Barclays lifted their price objective on shares of Taiwan Semiconductor Manufacturing from $665.00 to $670.00 and gave the stock an "overweight" rating in a research report on Friday, October 16th. Finally, DA Davidson reissued a "buy" rating and set a $500.00 target price on shares of Taiwan Semiconductor Manufacturing in a research note on Friday, October 16th. Three analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Buy" and an average price target of $533.89.

Taiwan Semiconductor Manufacturing Price Performance

The stock has a market capitalization of $2.14 trillion, a price-to-earnings ratio of 26.56, a price-to-earnings-growth ratio of 0.77 and a beta of 1.44. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14. The stock has a 50-day simple moving average of $430.71 and a 200 day simple moving average of $401.43.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 earnings per share for the quarter, beating the consensus estimate of $4.45 by $0.15. The company had revenue of $46.72 billion for the quarter, compared to analysts' expectations of $45.67 billion. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The business's revenue for the quarter was up 41.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.92 EPS. On average, equities research analysts forecast that Taiwan Semiconductor Manufacturing Company Ltd. will post 17.46 EPS for the current fiscal year.

Key Taiwan Semiconductor Manufacturing News

These are some of the TSM news items that stood out recently:

• Positive Sentiment: The board approved investments of up to $500 million each in OpenAI and Anthropic, extending TSMC’s AI exposure beyond chip manufacturing. TSMC also raised its quarterly dividend by 25.9%, adding a shareholder-return boost. TSMC Approves Up to $1 Billion Investment Plan
• Positive Sentiment: A broader chip-sector rally, helped by strong CoreWeave results that eased concerns about an AI-hardware slowdown, has provided additional support for semiconductor stocks. Chip Stocks Jump as CoreWeave Eases AI Fears
• Negative Sentiment: Strong sales may raise expectations for future results, leaving the stock vulnerable if AI demand or guidance disappoints. The proposed investments also carry risk and are not guaranteed to generate returns. Wedbush Says the Bar Is Set High

Insider Buying and Selling

In related news, Director Michael R. Splinter bought 840 shares of the firm's stock in a transaction on Thursday, November 5th. The stock was bought at an average price of $357.00 per share, with a total value of $299,880.00. Following the purchase, the director directly owned 8,405 shares of the company's stock, valued at approximately $3,000,585. This represents a 11.10% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, VP Lipen Yuan purchased 1,000 shares of the stock in a transaction dated Sunday, November 1st. The shares were bought at an average price of $71.49 per share, for a total transaction of $71,490.00. Following the completion of the acquisition, the vice president owned 8,000 shares in the company, valued at $571,920. This represents a 14.29% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders acquired 7,869 shares of company stock valued at $823,771. Insiders own 1.11% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Fisher Asset Management LLC increased its holdings in Taiwan Semiconductor Manufacturing by 0.4% in the third quarter. Fisher Asset Management LLC now owns 18,932,587 shares of the semiconductor company's stock worth $8,636,858,000 after buying an additional 66,389 shares during the last quarter. Tiger Global Management LLC lifted its stake in Taiwan Semiconductor Manufacturing by 49.4% in the first quarter. Tiger Global Management LLC now owns 5,565,074 shares of the semiconductor company's stock valued at $1,880,717,000 after acquiring an additional 1,839,600 shares during the last quarter. Russell Investments Group Ltd. grew its position in Taiwan Semiconductor Manufacturing by 12.5% in the third quarter. Russell Investments Group Ltd. now owns 4,057,858 shares of the semiconductor company's stock worth $1,851,187,000 after acquiring an additional 451,966 shares in the last quarter. Sei Investments Co. grew its position in Taiwan Semiconductor Manufacturing by 11.8% in the first quarter. Sei Investments Co. now owns 2,591,510 shares of the semiconductor company's stock worth $875,802,000 after acquiring an additional 274,389 shares in the last quarter. Finally, Bessemer Group Inc. increased its stake in shares of Taiwan Semiconductor Manufacturing by 7.9% during the 1st quarter. Bessemer Group Inc. now owns 1,781,764 shares of the semiconductor company's stock worth $602,147,000 after purchasing an additional 130,602 shares during the last quarter. 16.51% of the stock is owned by institutional investors and hedge funds.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics. Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.

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